The Marzetti CompanyMZTI
▲ PositiveCapitalrelevance
Record year with higher EPS, margins, and dividend raise, though Q4 sales dipped and Cyclospora outbreak poses near-term headwinds.
Impact on stocks 1
Consumer Staples
The Marzetti CompanyThe Marzetti Co reported a record fiscal year 2026, with record net sales, gross profit, and operating income, despite a 2.2% decline in fourth-quarter net sales to $465 million. Adjusted net sales improved 40 basis points excluding noncore temporary supply agreement sales, and the retail segment grew 0.9% including $15.4 million from Bachan's. Gross profit rose 7.4% to $114 million, with margins expanding 220 basis points reported and 160 basis points adjusted. Operating income grew 48.2% reported and 17.5% adjusted, while diluted EPS increased 49.2% to $1.76. The company generated record operating cash flow of $283.8 million, up 8.5%, and raised its quarterly dividend 5% to $1 per share. However, a Cyclospora outbreak is expected to cause a 250 basis point net sales headwind in fiscal first quarter 2027, with flattish sales and a 15% decline in operating income. Management expects mid-single-digit revenue growth for fiscal 2027, driven by Bachan's and foodservice, with gross margin expansion of 100 basis points.
The Marzetti CompanyRecord year with higher EPS, margins, and dividend raise, though Q4 sales dipped and Cyclospora outbreak poses near-term headwinds.